US President Donald Trump on Monday signalled a possible de-escalation in tensions with Iran, announcing a temporary halt to planned strikes on the country’s energy infrastructure while hinting at ongoing negotiations that could reopen the strategically crucial Strait of Hormuz.

Describing recent engagements as “productive conversations,” Trump said Washington would hold off military action for a five-day window. However, his remarks created uncertainty over who exactly is involved in the talks and what form any agreement might take. Watch the viral clipping below:

Iran quickly pushed back, with state-affiliated Fars news agency citing a source to deny that any direct or indirect discussions with the United States are underway.

Despite the ambiguity, global markets reacted swiftly. Oil prices dropped sharply, the US dollar weakened against major currencies, equities rallied, and government bond yields eased, reflecting investor optimism over a potential cooling of the conflict.

The Strait of Hormuz, a narrow but critical shipping route that carries roughly a fifth of the world’s oil and liquefied natural gas, has been severely disrupted since the escalation of hostilities following US-Israeli strikes on Iran in late February.

The conflict has since spiralled into a wider regional crisis, marked by drone and missile exchanges targeting key energy facilities.

Earlier this month, Israeli strikes hit Iran’s South Pars gas field, prompting retaliatory attacks from Tehran on Qatar’s Ras Laffan LNG facility, located across the same field.

Iran has also warned it would expand its targets to include Israeli power infrastructure and assets linked to US bases in the Gulf if its own energy network comes under attack.

Amid this backdrop, Trump expressed confidence that the Strait of Hormuz could reopen “very soon” if negotiations progress. He also floated the idea of some form of joint oversight of the waterway, though he offered no clear details.

“Maybe me. Maybe me and the Ayatollah, whoever the next Ayatollah is,” Trump said while speaking to reporters, a remark that drew attention for its vagueness and tone.

Just days earlier, Trump had issued a stark warning to Tehran, saying Iranian power plants would be targeted unless the strait was fully reopened to shipping within 48 hours, setting a deadline late Monday evening.

The ongoing conflict has already claimed more than 2,000 lives and sent shockwaves across the Gulf region, with ripple effects felt globally through volatile energy markets and rising inflation concerns.

Trump also suggested that the early phase of the military campaign had significantly weakened Iran’s leadership, adding that a “very serious form of regime change” could be underway.

At the same time, he struck a more conciliatory note on diplomacy, describing unnamed interlocutors as “reasonable” and “respected,” and hinting they could play a key role in shaping any potential agreement.